Tanzanian business mogul Edhah Abdallah, through his company Amsons Industries (K) Ltd, has acquired a commanding 96.4% stake in Bamburi Cement, solidifying his presence in the East African cement industry.
The deal involved the purchase of 362.96 million shares valued at KSh 23.2 billion (approximately TZS 424.31 billion), positioning Amsons as the majority shareholder in this regional cement giant.
The acquisition was executed in two phases, with shareholders initially approving the transfer of 212.73 million shares valued at KSh 13.83 billion (TZS 252.94 billion).
This was in addition to 137.06 million shares previously acquired by Amsons, culminating in a total investment of KSh 22.74 billion (TZS 415.90 billion).
Each share was purchased at KSh 65 (TZS 1,188.81). Amsons Industries described the acquisition as a strategic move to expand its portfolio in specialized cement production, with a vision to deliver long-term value for all stakeholders.
The acquisition journey was not without hurdles. According to Business Daily, Amsons secured the deal after Savannah Cement, a rival bidder, withdrew from the process.
Legal complications surrounding Savannah Cement’s chairman, Benson Nduta, and allegations of fraud hampered their ability to sustain a KSh 75 (TZS 1,371.70) per share bid.
Kenya’s Capital Markets Authority (CMA) approved the transaction, emphasizing that shareholders opposing the sale would retain their stakes in Bamburi Cement.
The CMA also clarified that Savannah Cement’s bid failed to meet regulatory thresholds due to the legal issues facing its leadership.
The announcement of Amsons Industries’ intent to acquire Holcim’s entire stake in Bamburi Cement triggered a surge in the company’s stock value.
In July, Bamburi shares rose by 28.33% on the Nairobi Securities Exchange (NSE), closing at KSh 57.75 (TZS 1,056.21) compared to KSh 49.60 (TZS 907.15) earlier in the day.
Over the past year, the company’s share value has recorded a remarkable 58% growth, reflecting its resilience and market confidence.
This acquisition marks a pivotal moment for the East African cement industry, as Amsons Group assumes a leadership role in driving innovation, production capacity, and regional competitiveness.